Cathay Pacific: current conditions “very difficult”; but seeing stabilisation in cargo business

Cathay Pacific CEO, Tony Tyler, stated that current business conditions are “very difficult”, with the CEO adding, “we haven’t yet seen any sign of a recovery”. The carrier is facing a “toxic” combination of low fares, a significant reduction in premium travel, weak cargo load factors, “poor” yields and a negative currency impact, which is making it “more important than ever” for the carrier to protect its cash levels. [1504 words]

CAPA Members Login Username: Password: Remember details

Instantly get access to this article now for USD15.00. or If you've already bought this article, you can view it by typing your Article Key:

This report contains the following subheadings:

• More aircraft deferrals
• Significant unpaid leave scheme uptake; further cost-cutting measures likely
• Reducing passenger capacity by 8% and cargo capacity by 11%
• No intention of selling stake in HAECO
• Planning to alter fuel hedging programme
• Enhances cooperation with Finnair; to reduce Kota Kinabalu frequencies as part of redeployment strategy
• Launches 'Booking Management Service'
• Executive appointments

This report contains the following charts and tables:

• Cathay Pacific passenger number and cargo volume growth: Apr-2008 to Mar-2009
• Cathay Pacific fleet delivery plan: as at Jun-2009
• Cathay Pacific Special Leave Scheme: Announced Apr-2009
• Cathay Pacific cost-reduction measures in response to business downturn
• Cathay Pacific major subsidiaries and associates
• Cathay Pacific capacity share (% of total network)
• Cathay Pacific reductions compared with the 2008 peak